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CLT UPDATE
Monday, November 17, 2914

Thank you; and Grad Tax


Less than 24 hours after volunteering that she is exploring ways to move Massachusetts from a flat to a graduated income tax structure, Democratic gubernatorial candidate Martha Coakley emphasized that she hopes taxes will go down in Massachusetts if she's elected governor.

The attorney general, who is tied in polls with Republican Charlie Baker, said in a one-on-one debate at WGBH Tuesday night that, "We are exploring ways to do a more graduated income tax."...

Massachusetts voters over the years, most recently in 1994, have consistently rejected constitutional amendments calling for a graduated income tax. Democratic leaders in recent years have been reluctant to go down that path again, even though Gov. Deval Patrick and others have expressed interest, if not outright support, for the concept as a way to improve the "fairness" of the tax code, which they say regressively hits lower-income earners disproportionately compared to high wage earners.

Sen. Stanley Rosenberg, a proponent of the graduated income tax, is poised to be elected the next Senate president in January. "I will be discussing it with my colleagues," Rosenberg told the News Service in March after a special Tax Fairness Commission, co-chaired by Rep. Jay Kaufman and Sen. Michael Rodrigues, included the graduated income tax among its recommendations.

"I said I'm not going to raise taxes and I meant it," Baker told reporters Wednesday afternoon after emerging from a meeting with mayors around the state on Beacon Hill. Baker described the graduated income tax as "something the voters of Massachusetts have rejected soundly at the ballot box several times over the course of the past 20 or 30 years."...

"If you're trying to create jobs it doesn't make sense to give opened-ended authority to the legislature to raise taxes on higher income individuals," said Massachusetts Taxpayers Foundation President Michael Widmer.

Widmer and MTF have been longtime opponents of the graduated income tax system....

Barbara Anderson of Citizens for Limited Taxation agreed with Widmer, one of her longtime ideological sparring partners.

"Since our state constitution allows only a flat rate income tax, those who want a graduated income tax must place this proposal on the statewide ballot for a constitutional change by voters. This change would take at least four years. So far, voters have said 'no' five times. So, Coakley using the grad tax as a possible funding mechanism for her new programs is just rhetoric. She doesn't know what else to say when asked about new taxes," said Anderson.

In 1994 Anderson was the face of the successful effort that beat back the last attempt to institute a state graduated income tax. Anderson, along with allies from Massachusetts High Tech Council and the MTF representing the Boston business community, defeated what was then known as Question 6 by more than 800,000 votes.

The Springfield Republican
Saturday, October 25, 2014
Martha Coakley's comments on graduated income tax
criticized by taxpayer watchdogs

By Garrett Quinn


Sen. Stanley Rosenberg, a proponent of the graduated income tax, is poised to be elected the next Senate president in January. "I will be discussing it with my colleagues," Rosenberg told the News Service in March after a special Tax Fairness Commission, co-chaired by Rep. Jay Kaufman and Sen. Michael Rodrigues, included the graduated income tax among its recommendations.

"I said I'm not going to raise taxes and I meant it," Baker told reporters Wednesday afternoon after emerging from a meeting with mayors around the state on Beacon Hill. Baker described the graduated income tax as "something the voters of Massachusetts have rejected soundly at the ballot box several times over the course of the past 20 or 30 years."

State House News Service
Wednesday, October 22, 2014
Coakley hedges exploration of income tax change


Chip Ford's CLT Commentary

First, before we go any further, thank you to those who made quick donations to CLT.  They have permitted us to pay for the belated fall mailing postage cost — it will go out and may keep CLT alive for a few months more.

When the returns come in from that mailing, I will do a long overdue triage of the mailing list; removing those who are clingers and non-members for years.

Many who are still carried by our members will be deleted — including you who are still receiving these CLT Updates.  You who shouldn't be receiving them will get one last chance to become part of your own salvation  Then you'll be gone, destined to be shunted back to the "Uninformed Voters" category.  Your call.

CLT — which had done so much over the decades for taxpayers — is still working for you.

Who else is?

Now we have ANOTHER Graduated Income Tax coming (Grad Tax).  It would separate us one tax bracket at a time, virtually impossible to build enough resistance in each case to oppose.

Do you want to go there?  Taxpayers in the past have understood this, have been smart enough to vote against it.

Chip Ford


 

The Springfield Republican
Saturday, October 25, 2014

Martha Coakley's comments on graduated income tax criticized by taxpayer watchdogs
By Garrett Quinn

BOSTON — Recent comments on the graduated income tax by Democratic gubernatorial candidate Martha Coakley brought the often controversial tax proposal back into the Massachusetts political conversation this week.

Coakley's comments during the joint WGBH/Boston Globe debate about her openness to implementing a graduated income tax system in order to raise state revenues without burdening the middle class was quickly pounced on by her Republican opponent Charlie Baker and taxpayer advocates.

"We are exploring ways to do a more graduated income tax," said Coakley while answering a question about how she could raise revenues by taxing the top two percent of income earners at a higher rate.

Coakley said that a graduated income tax system could be a "last resort" to raise revenues in her administration.

The attorney general walked back those comments after the debate, as well as at event the following morning in Boston.

"Let me be clear because I want to make sure everybody saw and heard the same debate that I was in last night. I have said I hope taxes go down. I support the income tax as our economy improves and I support that income tax going down," said Coakley.

Coakley said she was merely looking at the graduated income tax as a possibility in the future.

"I did not say we have to do this," said Coakley.

Coakley repeatedly told reporters after a campaign event on Wednesday that she was not interested in raising taxes, though when asked if there were any taxes she would cut she could not give a specific answer. Coakley did say she hopes the economy improves so the income tax continues its rollback to five percent.

Any move to implement a graduated income tax system in Massachusetts would require an amendment to the state constitution, something that could occupy extensive political capital and time for the next governor.

Local taxpayer advocates were critical of Coakley's simple openness to the graduated income tax during interviews this week.

"If you're trying to create jobs it doesn't make sense to give opened-ended authority to the legislature to raise taxes on higher income individuals," said Massachusetts Taxpayers Foundation President Michael Widmer.

Widmer and MTF have been longtime opponents of the graduated income tax system.

Widmer told the Tax Fairness Commission in February that any change to the state's income tax structure that would tax high income individuals at a higher rate would be hurt the state's economy.

"Amending the state’s constitution and adding to the tax burden of middle and higher income taxpayers, including businesses that pay personal income taxes, would pose one more disincentive to job creation in the state," said Widmer while testifying before the commission.

Barbara Anderson of Citizens for Limited Taxation agreed with Widmer, one of her longtime ideological sparring partners.

"Since our state constitution allows only a flat rate income tax, those who want a graduated income tax must place this proposal on the statewide ballot for a constitutional change by voters. This change would take at least four years. So far, voters have said 'no' five times. So, Coakley using the grad tax as a possible funding mechanism for her new programs is just rhetoric. She doesn't know what else to say when asked about new taxes," said Anderson.

In 1994 Anderson was the face of the successful effort that beat back the last attempt to institute a state graduated income tax. Anderson, along with allies from Massachusetts High Tech Council and the MTF representing the Boston business community, defeated what was then known as Question 6 by more than 800,000 votes.


State House News Service
Wednesday, October 22, 2014

Coakley hedges exploration of income tax change
By Andy Metzger


Less than 24 hours after volunteering that she is exploring ways to move Massachusetts from a flat to a graduated income tax structure, Democratic gubernatorial candidate Martha Coakley emphasized that she hopes taxes will go down in Massachusetts if she's elected governor.

The attorney general, who is tied in polls with Republican Charlie Baker, said in a one-on-one debate at WGBH Tuesday night that, "We are exploring ways to do a more graduated income tax."

Coakley is running on an investment agenda and has expressed hope that natural growth in tax revenues and savings within the state budget will pay for her spending proposals, with tax increases a "last resort." She mentioned a graduated income tax during the debate when pressed by moderator Jim Braude, a former left-leaning tax activist, on which tax she would look to if she needed to generate revenues.

On a visit Wednesday morning to the New England Center for Homeless Veterans, where she outlined a compassionate government that would offer help to those in need, Coakley tried to explain her intentions around the income tax, which is at a flat rate of 5.2 percent and could drop down to 5 percent over the next four years if the economy grows fast enough.

"Let me be clear because I want to make sure everybody saw and heard the same debate that I was in last night. I have said I hope taxes go down," Coakley began, clarifying that she said if she needed to raise taxes she would aim to protect those on the lower rungs of the income bracket. She said, "I did not say we were going to do this."

If the state needed new revenues, Coakley said during the debate, she backs tax increases on the top 2 percent income earners in Massachusetts.

There has been little support on Beacon Hill in recent years for a graduated income tax structure under which lower income workers would pay at a lower rate, with rates gradually rising and the highest income individuals paying the highest rate. The Legislature this session did not give serious consideration to a sweeping $2 billion plan by Gov. Patrick to raise new tax revenues while accomplishing some of the goals of a graduated income tax without passing a constitutional amendment.

Massachusetts voters over the years, most recently in 1994, have consistently rejected constitutional amendments calling for a graduated income tax. Democratic leaders in recent years have been reluctant to go down that path again, even though Gov. Deval Patrick and others have expressed interest, if not outright support, for the concept as a way to improve the "fairness" of the tax code, which they say regressively hits lower-income earners disproportionately compared to high wage earners.

Sen. Stanley Rosenberg, a proponent of the graduated income tax, is poised to be elected the next Senate president in January. "I will be discussing it with my colleagues," Rosenberg told the News Service in March after a special Tax Fairness Commission, co-chaired by Rep. Jay Kaufman and Sen. Michael Rodrigues, included the graduated income tax among its recommendations.

"I said I'm not going to raise taxes and I meant it," Baker told reporters Wednesday afternoon after emerging from a meeting with mayors around the state on Beacon Hill. Baker described the graduated income tax as "something the voters of Massachusetts have rejected soundly at the ballot box several times over the course of the past 20 or 30 years."

Baker was meeting with members of the Massachusetts Municipal Association to hear their concerns and talk about his ideas, according to an aide.

Pressed by Braude in an earlier primary election debate on NECN, Coakley this year said she would "potentially" be in favor of a constitutional amendment that would allow for a graduated tax structure while also suggesting "there are probably easier ways to do it." Asked if she was unsure at the early September debate, Coakley said, "Unsure, absolutely, because I am going to think about it."

During the debate, Baker made the case that he cares about people, not just numbers.

A former Cabinet secretary in the Weld and Cellucci administrations, Baker said "the single biggest thing that drives me up the wall" is the notion that "I care about numbers and I don't care about people."

Asked Wednesday whether Baker cares about numbers not people, Coakley said, "That's what I believe."

Independents Evan Falchuk, Jeff McCormick and Scott Lively have remained in the low single digits in polls while Coakley and Baker have been steadily neck and neck, hovering around 41 points apiece.

The Coakley camp seized on Baker for leaving open the possibility of raising fees in the debate, likening him to former Gov. Mitt Romney. Coakley also raised questions about the Baker's ability to balance the state's books and afford tax cuts he has outlined on the campaign trail.

"The attorney general has stood idly by for the past seven years as taxes on gas, sales, cable TV and a host of other services - property taxes, fees, registry fees, local fees - have gone up across the Commonwealth," Baker said.

Meeting with staff and people serviced by the shelter, Coakley praised the work, talked about the need for veterans to speak up when they need help and gave out "homework" for wish lists she can consider if elected.

At a debate in Springfield in September Coakley critiqued Baker, saying unlike him she wouldn't need to meet with mayors to hear their priorities because she has already heard them.

"I'll give you some homework," Coakley said at multiple stops throughout the tour Wednesday.

Baker said he would put his record on helping reduce homelessness up against Coakley's.

"It's unfortunate that as we sit here today, there's been so little action on this," Baker said. "I think in many cases actions speak louder than words, and I'm proud of the work we did in the 1990s to serve homeless families, homeless individuals with mental illness, and it was recognized by the national homeless advocacy organizations as some of the best work in the country."

The shelter Coakley visited has a separate facility with 10 beds where people can show up intoxicated, a computer classroom and a housing center where listings on a bulletin board advertised single bedrooms in Brighton, Woburn and Haverhill renting for $1,275, $995 and $1,250 per month.

"This takes care of the roof over my head and the food in my stomach so now I can worry about the other problems," said Paul Younie, an Air Force veteran who said he will soon be moving into an apartment in Weymouth.

"We all need help in life. We all need support," said Coakley. Bruce Brown, an Army National Guard veteran who prefers the term "displaced" to "homeless" told Coakley, "Hopefully you're going to win."

NECHV President Andrew McCawley, a Navy veteran, led Coakley on a tour around the center, which she said was her second in the last year.

John DeCoste told the News Service he spent three years living on the street after a lawsuit torpedoed his Malden recycling business. DeCoste, who said he served in the Army in the 1980s, had been living in North Reading and was brought to the shelter by Somerville police. Saying he had never had problems with drugs or alcohol, DeCoste told the News Service, "I didn't know anything about shelters and I never asked my family for help."

As Coakley passed by, DeCoste told her his nephew works for her, and Coakley appeared to recognize the name. She said, "Yep. Yep. We have a great office," before moving on.

Michael Norton contributed reporting

 

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


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